In this FDD Talk 2015 post, you’ll learn the following:

• Section I – Background information on the Molly Maid franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Molly Maid franchise, based on Item 7 of the company’s 2015 FDD

• Section III – Presentation and analysis of Molly Maid’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:

• 2014 average gross sales, labor costs, insurance, auto expenses, advertising, royalties, cleaning expenses, all other expenses, and available to owner for Molly Maid Operators who did over $1 million in gross sales in 2014; submitted their year-end profit and loss statement by February 15, 2015; and who have been open 4 or more years

• 2014 average gross sales for four distinct sales range groups ($0 to $400,000; $400,001 to $700,000; $700,001 to $1,000,000; and $1,000,001+) for all Operators in business for at least two full calendar years as of December 31, 2014

• 2010, 2011, 2012, 2013, and 2014 average weekly gross sales by year for all established Operators (i.e. those that started operation on or before December 31, 2010)

• 2010, 2011, 2012, 2013, and 2014 average price per clean for all Operators open during each year
  

• percentage of cleans performed in 2014 that were performed for recurring customers versus the percentage of cleans performed for occasional customers

Section I – Background Information

Molly Maid Becomes Part of Dwyer Group

Molly Maid, which became part of Service Brands International in 2007, joined an even larger group in June 2015 when Ann Arbor, Michigan-based SBI and its three franchise networks were acquired by Dwyer Group.

The deal, which brought in 244 Molly Maid, 118 Mr. Handyman and 55 Protect Painters franchisees, was the largest in the history of the Waco, Texas-based Dwyer Group, a portfolio company of global private equity firm The Riverside Co.

Service Brands founder and Chairman David McKinnon became an equity stakeholder in the Dwyer Group and senior adviser on Dwyer’s board of directors. An office will continue to operate in Ann Arbor.

Company Name Inspired by Molly Brown Character

Molly Maid was founded by Adrienne and Chris Stringer in Mississauga, Ontario, Canada, in 1979. They named the company after the title character in the 1964 movie “The Unsinkable Molly Brown,” whose title character is based on the life of Titanic survivor Margaret Brown.

The company entered the U.S. in 1984 and has more than 400 locations worldwide. Molly Maid was No. 88 on Entrepreneur’s Franchise 500 for 2015.

Family First

Molly Maid has from the time of its inception placed high importance on the lives of families, with its hours of 8 a.m. to 5 p.m. Monday through Friday, with no night or weekend operating hours.

Molly Maid has an impressive 97 percent rate of customer retention. Considering the brand has more than 17 million customers just in the U.S., that’s a lot of people sticking with Molly Maid and its pink-and-blue-clad service providers. In 2014, the brand saw a 5.1 percent increase in consumer sales.

Cleaning Plans: Simple, Yet Flexible

Maids who are trained, bonded and insured provide services according to cleaning plans that fit customers’ needs and priorities. Cleaning services can be performed weekly, on alternate weeks, monthly, or on an as-needed basis. One-time cleaning is also available for special occasions. Services can be provided in houses as well as apartments and condos, and plans can be tweaked as needed.

Molly Maid strives for a balance between disinfecting homes against germs and harmful bacteria and being environmentally responsible. When a customer wants a full green cleaning, Molly Maid will skip the disinfectant and use all green cleaners. Or the two could be alternated to reduce the use of disinfectant while also addressing allergens, germs and bacteria.

The cleaning staff at a home is a team of two, including a route manager and an assistant. They arrive in branded cars and wear distinctive uniforms.

Expansion Planned in Alabama

Molly Maid announced in May 2015 that it was looking for franchisees for as many as five locations in Alabama, where the company had only one location at that time but has seen a growing interest among potential customers.

Section II – Estimated Costs

• Please click here for detailed estimates of Molly Maid franchise costs, based on Item 7 of the company’s 2015 FDD.

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis